Panmure Liberum has reiterated its ‘buy’ rating on Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) and maintained its price target at 3.6p, following interim results that confirmed the company is edging closer to maiden production.
The helium explorer and developer posted a first-half loss of $1.9m - expected at this pre-revenue stage - with net cash of $10m after a recent fundraise.
But the real story, says analyst Ashley Kelty, is what comes next. Helium One is targeting first output from its Galactica-Pegasus project in Colorado by mid-2025, with drilling already underway and early results looking promising.
Initial testing at the Jackson-31 well showed helium flows of up to 400 thousand cubic feet per day, with concentrations over 2%.
The company is also making headway in Tanzania, where it recently received an offer for a mining licence covering 480km². This paves the way for potential commercial production at its Southern Rukwa project, following successful helium finds at two wells.
Kelty sees scope for re-rating as production nears.
In early afternoon trading, the stock was up 2.7% at 1.01p.